Support and Resistance - The Best Forex Strategy

A Simple Forex Strategy

When trading forex is does not necessarily have to be as complex as some of the signals that are available, which for the beginning trader can be confusing. Even experienced traders will often use a very simple forex strategy from time to time and will more than likely make up a large part of their trading arsenal.

In this article I am going to explain the method of using pivot points as a simple forex strategy based on support and resistance.

When studying your forex charts you will always see on all of the time frames where a currency reaches a price and keeps getting knocked back from going past that point. In a buy situation this is known as resistance and in a sell situation this is known as support.

Your charting package uses this data from the previous day to mark pivot points on your chart which are represented as dotted lines; black for the main pivot then three green lines for resistance levels 1,2,and 3. On the sell side you will find 3 red dotted lines representing the support levels 1,2 and 3.

Using these pivot points as a simple forex strategy can be very profitable for breakout trades and reverse trading. When a currency breaks through a pivot point it is a good indication that it will carry on that trend up to the next pivot point, when it breaks through the level 3 zones it is a good indication that the currency is over sold or bought and may well reverse. The pivot points can also be used at the 1 and 2 levels for mini trend reversals and can see good profit taking.

Support and resistance is what makes up the basis of most forex trading indicators even the more complex such as Fibonacci retracements are formed from support and resistance levels. To be successful at forex trading does not necessarily mean you have to know the ins and outs of every trading indicator, with a good charting package most of the calculations are done for you.

What is important in forex trading is gaining experience with the different currency pairs and realising the way in which they move. The different major currency pairs have different degrees of volatility and becoming aware of these will help you make the right decision in your forex trading actions. Gaining experience can be done with a demo account which enables you to trade with play money in a real live situation so you have nothing to lose

How to Find the Best Forex Strategies and Trading Courses

To truly understand the best Forex strategies and trading courses, insight into the market is always required. Understanding the spot metal and future trading and comprehend currency pairs is crucial in realizing its potential. Knowing the purposes and usages of metals you deal in will allow you to research the market for its potential profits.

The various options of Forex training materials is located in various books, online seminars, and experience. Successfully integrating these three will set the trader on a good path. The right training will provide one the insight into which metals and/or which pairs to invest in.

After taking some courses, you should identify with how currency pairs affect each other and then exploiting the market value of coins. It is recommended to do extensive research on how currency works. Currency trading is not easy and it sometimes will be financially draining and time consuming.

Risk factors will be taught and an introduction on how to manage the factors is relevant. Good teaching material will develop your awareness in how to manage those risks. Learning how to cope with losses and controlling emotions are very important aspects.

It is not wise to trade in unpredictable environments. Successful currency and metal trading is based on expert opinion and predictions. If the system is analyzed enough, a person can predict the outcome of such deals and capitalize on it.

The materials will offer e-books, DVDs, physical copies, and collaboration. At least this way, one has a solid course of action and is prepared to deal once they learn the bits and pieces. All-in-all, the best Forex trading strategies and trading courses should offer the students unbiased opinion.

This means, the providers should have no immoral or hidden agendas behind teaching people the contents of the course. Maybe a little research into the credentials of the person providing teachings should be implemented. After all, there is nothing to lose.

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More info on this link:

- https://www.bloomberg.com/video/forex-trading

- https://www.xm.com/forex-trading